W Dividend Type Payments
Although W has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Wayfair Inc. Class A to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 4:16 PM ET):
Wayfair Inc. Class A (W) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
55.51 | 55.60 | 55.82 | +3.39 | 4.3M | - | 6.5B |
W Dividend-Like Income Using Covered Calls
With W at 55.82, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:
Annual Yield | Annual Premium | Cents/Day |
---|---|---|
3% | 1.67 | 0.5 |
5% | 2.79 | 0.8 |
10% | 5.58 | 1.5 |
So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:
3% Yield On W Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 1 | 56.00 | 4.55 | 29 | 15.7 | 0.40 (0.7%) | |
Nov 8 | 56.00 | 5.05 | 36 | 14.0 | 0.40 (0.7%) |
5% Yield On W Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 1 | 56.00 | 4.55 | 29 | 15.7 | 0.40 (0.7%) | |
Nov 8 | 56.00 | 5.05 | 36 | 14.0 | 0.40 (0.7%) |
10% Yield On W Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 1 | 56.00 | 4.55 | 29 | 15.7 | 0.40 (0.7%) | |
Nov 8 | 56.00 | 5.05 | 36 | 14.0 | 0.40 (0.7%) |
Want to increase dividends with covered calls? Sign Up For A Free Trial
Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | EEM dividend | 1. | CLOV dividend | |
2. | IWM dividend | 7. | SLV dividend | 2. | AEHR dividend | |
3. | SPY dividend | 8. | SMCI dividend | 3. | APLD dividend | |
4. | FXI dividend | 9. | KWEB dividend | 4. | CPRI dividend | |
5. | QQQ dividend | 10. | HYG dividend | 5. | WOLF dividend |
Want more examples? VZ Dividend | WAB Dividend